InfoTech Predicts Wireless LAN End User Revenue to Reach $4.2 Billion in 2005

January 9, 2002

Unlike many other segments of the communications industry, worldwide end user revenues for Wireless LAN (WLAN) infrastructure will grow at a CAGR of 36% between 2000 through 2005 to reach $4.2 billion in 2005.

As evidenced by a new study from InfoTech, a global telecommunications consulting firm based in New Jersey, WLANs are starting to see significant growth in new segments outside their traditional vertical markets - including home networking and public access hotspots. "The key drivers for WLAN growth are declining product prices, increased laptop deployment, the appearance of devices with embedded wireless LAN capabilities, the availability of higher-speed products, the push for increased employee productivity, and the expanded reliance upon the Internet," as stated by InfoTech's senior analyst, Shelly Tyler Radler.

According to the new study, "Wireless LANs: Global Market Demand and Opportunity Assessment", the wireless LAN market continues to attract additional players that could eventually lead to consolidation. Proxim (NASDAQ: PROX), Symbol (NYSE: SBL), Cisco (NASDAQ: CSCO), and Agere (NYSE: AGR.A) continue to retain the leading positions in terms of end user revenue and units shipped; however, new market entrants such as Buffalo Technology and Linksys are starting to achieve significant momentum.

Based on extensive primary research of WLAN users and non-users, the study demonstrates that concerns over security and reliability are currently the main barriers to initial investment in Wireless LANs. For those who have already made the decision to invest, vendor reputation and product interoperability are the two most critical factors affecting their vendor choice - with cost being the least important variable.

To complement this study, a comprehensive profile report on the major WLAN players is also available. To purchase these studies or to learn more about InfoTech's products and services, please contact Mark Ricca at 973-602-0124 or via e-mail at

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